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Hints & Tips

Lymm Village

Tax Hints and Tips

Lymm Village

Free hints and tips about tax and accountancy from Lymm Tax

Wedding (tax) planning

Everyone loves a good wedding and tax planners are no exception.

The bride and groom and their families may be interested to know:

  • Weddings are good news for Inheritance tax. Usually gifts of capital by parents to children are potentially liable to inheritance tax but a wedding gives each parent an opportunity to make a tax free gift of £5,000 to the happy couple.
  • Weddings change things for Capital Gains Tax purposes. Once you marry only one house will qualify for the “home” exemption. If each person has previously owned their own home this needs thinking about as one will become a chargeable asset. Husband and wife become connected for CGT purposes so gifts between them can be made without tax charges arising: usually good news; but bad news if one partner has an asset which is currently worth less than you paid for it. Maybe it should be transferred to the other partner before the marriage.
  • Child benefit. If this is a second relationship and both partners already have children remember to tell the Child Benefit Agency as you may be entitled to less child benefit when you move in together. Similarly if one partner earns more than £50,000 you could lose some or all of your child benefit.
  • Income tax. If husband and wife pay tax at different rates (eg the wife pays tax at 40% and the husband stays at home looking after the children) owning things like bank accounts and buy to let properties jointly could help reduce your tax bills.